Hodge equity release is no longer available to new customers, but the lender offers alternative options for those looking to borrow in later life.

With products like Retirement Interest-Only (RIO) mortgages and repayment mortgages for retirees, Hodge provides flexible solutions to help homeowners access funds without committing to traditional equity release.

These alternatives allow borrowers to retain ownership of their property while managing repayments in a way that suits their financial situation.

Understanding these options can help retirees make informed decisions about funding their future while maintaining financial security and control over their home.

COMMENT: TimeBank is an independent third-party data provider, and the information shared here reflects their views alone, not necessarily those of Hodge. This article is for informational purposes only and should not be considered financial advice or a recommendation to engage with any products offered by Hodge.

What Is Hodge?

Hodge Bank is a UK-based financial services provider specialising in retirement solutions.

The bank was established in Wales in the 1950s by Sir Julian Hodge.¹

Today, the firm offers savings products, mortgages, and commercial investment products.

Does Hodge Offer Equity Release?

Hodge does not offer equity release to new clients anymore, as it sold that part of its business in 2021.²

Existing Lifetime Mortgage Clients

Existing lifetime mortgage clients can consult their correspondence from Hodge to find contact details for the firm that has taken over their lifetime mortgages.³

If you are an existing Hodge equity release client, your lifetime mortgage may now reside with Just, Pure Retirement, or Newcastle Building Society.

Does Hodge Offer Equity Release Alternatives?

Yes, Hodge offers equity release alternatives to older borrowers who may not qualify for a traditional mortgage.

Resi Retire (50+)

Hodge's Resi Retire (50+) mortgage is a fixed-term mortgage designed to support lending into retirement.

With the interest-only option, clients make monthly interest payments and must have a plan to repay the mortgage at the end of the term.

What kind of plan?

This could be through the sale of a property (main residence or second home) or by cashing in investments or other assets.

With the repayment mortgage, making all scheduled payments ensures the mortgage is fully repaid by the end of the term.

Retirement Interest Only (RIO) Mortgage

Hodge's RIO mortgages are interest-only mortgages designed for mature borrowers seeking the security of a mortgage with no fixed end date, provided they can maintain the monthly interest payments.

This kind of mortgage is repaid only when the borrower moves into long-term care or passes away.

With a Hodge RIO mortgage, clients can borrow up to 75% of their home's value, making only monthly interest payments.

This allows them to unlock equity for purposes such as repaying debts, supporting family, funding their lifestyle, making home improvements, or enjoying a dream holiday.

Comparing Features and Eligibility

Comparing features and eligibility criteria could be a useful way to work out whether one of these products could suit your needs.

Here's a summary:

	Resi Retire (50+)	Retirement Interest Only (RIO) Mortgage
Qualifying Age	50-88	50-88
Minimum Property Value	£100,000	£100,000
Property Location	England, Wales, Isle of Wight, and Scotland (including islands linked by road bridge to the mainland)	England, Wales, Isle of Wight, and Scotland (including islands linked by road bridge to the mainland)
Payments	monthly interest or full repayments	monthly interest only
LTV	up to 85%	up to 75%
Loan Amount	£20,000 to £2 million (interest-only) or £850,000 (repayment)4	£20,000 to £2 million
Interest Rates	2-year or 5-year fixed rates, reverting to SVR	2-year or 5-year fixed rates, reverting to SVR
End Date	defined, up to 41 years5	when last borrower passes away or moves into care
Repayment	(for interest-only) by selling home, cashing in investments or assets	by selling home when borrower passes away or moves into care
Early Repayment Charges	waived if you sell your home, repay the mortgage in full, and move out6	waived if you sell your home, repay the mortgage in full, and move out7

Could Hodge's Alternatives to Equity Release Be Right for You?

To find out if Hodge's alternatives to equity release could be right for you, weigh up the pros and cons and discuss them with a qualified advisor.

Benefits of Hodge's Retirement Products

Benefits of Hodge's retirement products include the fact that they're available to retirees who may struggle to qualify for traditional mortgages.

Other benefits include:

• Flexible Lending: Designed for those with complex incomes, offering tailored solutions.
• Affordability: Takes into account both current and future income to ensure affordability.
• Early Repayment Promise: No penalties if you need to sell your property and move out early.
• Equity Retention: Allows you to keep the equity in your home

Remember to consider the potential drawbacks as well.

Drawbacks to Hodge's Retirement Products

Drawbacks to Hodge's retirement products include the fact that, depending on the product and repayment type, your home may be sold to repay the debt.

Other potential downsides include:

• Complexity: May require professional advice to navigate the various options and criteria.
• Interest Payments: If choosing the interest-only option, you'll need a plan to repay the loan at the end of the term.
• Interest Accumulation: Interest compounds over time if you choose not to make payments, increasing the total amount repayable.
• Eligibility: Must be able to afford monthly interest payments.
• Repossession Risk: Your home may be repossessed if you fail to make repayments on your mortgage.

Discussing these pros and cons with your advisor can help you work out if these equity release alternatives could suit your needs.

Consulting an Advisor

Consulting an advisor is a very important step, so make sure you contact one with a good reputation.

Hodge's mortgages are only available through an advisor.

How Did We Review the Info on Hodge?

We spent hours gathering all available information on Hodge and their equity release alternatives so we could give you a condensed, easy-to-read version of their offering.

Hodge Client Reviews

Hodge client reviews online tend to be fairly positive, with an aggregate score of 4.7 out of 5 (from over 1,800 reviews) on Trustpilot and 3.91 out of 5 (from just three reviews) on Smart Money People.

Here are ratings from the top review sites:

• UK Trustpilot Reviews for Hodge
• Smart Money People client reviews of Hodge

Contact Hodge

Hodge can be contacted by email, post, or phone.

These details are:

• Email: lendingsupport@hodge.co.uk
• Phone: 0800 138 9109

Hodge’s Regulatory Details

Hodge's regulatory details may be of use to you as you do your research on equity release options.

Trading Names

• Hodge Bank
• Hodge
• Julian Hodge Bank Limited

FCA Permitted Services

• Accepting Deposits
• Administering a home reversion plan
• Administering a regulated mortgage contract
• Entering into a home reversion plan
• Entering into a regulated mortgage contract as lender
• Making arrangements with a view to a home reversion plan
• Making arrangements with a view to regulated mortgage contracts
• Entering into regulated credit agreement as lender (Excluding high-cost short-term credit, bill of sale agreement, and home collected credit agreement)
• Exercising/having right to exercise lender's rights and duties under a regulated credit agreement (excluding high-cost short-term credit, bill of sale agreement, and home collected credit agreement)
• Dealing in investments as principal

Regulators

• Financial Conduct Authority (FCA)⁸
• Prudential Regulation Authority (PRA)⁹

Registration Numbers

• FCA Ref Number: 204439
• Companies House Reg Number: 00743437

FCA & Companies House Link

• FCA Link: Hodge Bank
• Companies House Link: Hodge Bank

Common Questions

Final Thoughts on Hodge's Equity Release Alternatives

When considering later-life borrowing, it is essential to explore all available options to find the right fit for your financial needs.

Hodge offers alternatives to equity release, including Retirement Interest-Only (RIO) mortgages and repayment mortgages, which provide flexibility while allowing you to retain homeownership.

These products can help with retirement planning, whether by managing monthly costs or unlocking property value.

Before making a decision, seeking professional advice is crucial to understanding the benefits and potential risks.

For those looking for solutions beyond Hodge's old equity release options, these mortgages may serve as viable alternatives.